07/12/2015 BBC Business Live


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flood warnings around... This is a number. Hello. This is Business Live


from the BBC with Ben Thompson and Sally Bundock. Can software save the


world? As business leaders try to hash out an historic climate deal in


Paris, can technology can be the answer? Live from London, that's our


top story on Monday seventh December. As climate change talks


enter their second week in Paris, global leaders are looking at


radical new ways to cut emissions and save the planet. But as oil


prices slip below $40 a barrel after Opec keeps the taps open - is there


any incentive to look for alternative sources of energy?


And this is how markets are faring in early trade across Europe. We'll


discuss what's moving the numbers and why. From doctor to


businesswoman and entrepreneur, Dr Amy Jadesimi has been named one of


the youngest most powerful women in Africa - we will find out all about


her endeavours to skill young Nigerians for the future when she


joins us live later on the programme. And let us know what you


think of the stories we're covering. Get in touch, use the hashtag


BBCBizLive. Hello. News from Paris. Is pollution a necessary side effect


of economic development? Whether it's heavy industry, manufacturing,


or construction, environmental damage is often accepted as a


necessary evil. But as world leaders continue their climate change talks


in Paris this week they'll also ask whether new technology and


innovations can also solve some of the most pressing issues facing our


planet. And it's a big growth area. Green Energy Investments Worldwide


surged by a massive 17% last year to $270 billion. Leading the charge is


the technology kingpin and philanthropist Bill Gates - he's


already pledged $2 billion of his own money towards clean-technology


research. A day before the start of the climate talks in Paris he also


announced the Breakthrough Energy Coalition to invest in innovative


clean energy. The group comprises of 28 wealthy individuals worth a total


of $350 billion, with members including the likes of Jeff Bezos


and Mark Zuckerberg. So where is all this money going? As well as obvious


areas, companies are also looking at cutting edge technology such as


compressed air energy storage, windows that double as as solar


panels and renewable fuel that is made from algae. Packet. We can


night talk through some of these with Ian Simm, Chief Executive,


Impax Asset Management. It sounds like we're trying to find the holy


Grail with new technologies saving the planet. But there is quite a bit


out there already in terms of ideas? In the last 15 years we have seen


the rise of hybrid vehicles and electric vehicles. We have seen


solar panels that can work like plants and offshore wind power,


which is a real breakthrough. With the likes of Bill Gates ploughing


money into this, it looks like it will get that funding. But the


question is, when that will become a reality. The opportunity is to scale


up what we have already because we have fantastic technologies that


work so they need incremental scale and volume of demand but having said


that, there are potential breakthroughs we could look out for


the future, tidal power and wave power for the next 20 years, it is


looking at that -- worth looking at that in more detail and biofuel from


grass, we're not quite there yet from volume but it has potential of


lots to be done around lighting and these use the efficient heat and


light. In terms of Paris, those 185 countries represented, they are


trying to come to an agreement, but to what extent is this part of the


conversation? It is vital, if governments do not show commitments


to reduce in-house gas, entrepreneurs will not be confident


enough to invest so we do need agreement this week for a framework


for investors. You we will get that? Surprisingly hopeful because the US


and China, for the first time, have committed in principle to some sort


of domestic commitment and if they are on board, the Europeans will be


on board and those are the three major blocks. An agreement in place,


which is good news for businesses because you would assume that policy


will follow? Yes, agreement will be in place, all being well by the end


of this week, that is not guaranteed. Policy will follow but


quite slowly. The private sector moves faster, so 2016 we will look


at this agreement, it is serious, we want to do something about it and


commit some money. Thank you. We will keep you across div


elements. We cannot get up-to-date with other news... -- developers.


Bonuses for investment bankers in London could fall by as much


Emolument, which monitors salaries across the industry, says a drop


in revenues in the second half of the year combined with cost


A managing director in equities will still get


The opposition party in Venezuela has won control of the


National Assembly, for the first time since the socialists came to


The current President's popularity has fallen dramatically due to the


Venezuela's economy is heavily reliant on oil and has been badly


A brown Duke BusinessWeek and lots of corporate news already out there.


Electrolux, the takeover of GE appliances. That has been called


off, a $3.3 billion acquisition, the deal announced in September last


year but the Department of Justice has stopped them from dying GE


because they say the deal could push items that are electrical up I5%.


Consumers are glad to hear about that. Yes, that line at the bottom


suggests that Electrolux pays a termination fee of $170 million. So


Electrolux could be in it position to contest that. German industrial


production rises but not by very much. Much lower than expected.


Something we will talk about in a few moments when we look at the


European markets. To Australia now, where Prime


Minister, Malcolm Turnbull, has unveiled an $806 million package to


boost innovation across the country. Rajeshni Naidu-Ghelani is in


our Asia Business Hub in Singapore. Boasting elevation, we are told, but


it comes at a price? Yes, over 1 billion Australian dollars and it is


aimed to create what is called an ideas boom, this is to replace the


countries lacking mining boom, it was the main driver of growth for


nearly one decade but mining investment in Australia has picked


and the government is looking for new ways to boost growth so the


Prime Minister today introduced a list of 24 measures, including


everything from tax breaks for investors to changing immigration


laws to encourage entrepreneurs to move there. Money is being put aside


for Australian entrepreneurs to create a presence in global


technical hubs likes of the Colne Valley and there will be some


changes to bankruptcy laws to encourage businesses to take more


risks and stop Australia has been falling behind other countries that


have been pushing for high-tech exports so it'll be interesting to


see if this package results more innovative products from Australia.


Good stuff. Thank you. We can stay in the region and look at the


markets. Tokyo stocks rebounded Monday


as exporters got a boost from a weaker yen


after another strong US jobs report made a Federal Reserve interest rate


rise this month virtually certain. And that win of more than 200,000


new jobs in November reinforced the view that the world's largest


economy and a major Asian trading There's also renewed confidence that


the US economy can withstand a rate hike


after another strong jobs report. That helped to cushion


the blow of last week's worries over Europe and what was largely


perceived to be an underwhelming response from the ECB as far


as economic stimulus was concerned. There's some concern that


without the extra stimulus in the system, European shares could


now be more vulnerable to what happens in America


and other external influences. We'll talk more about that in


a moment and also the Bank of England governor speaks later


today ahead of the Bank of England But first,


let's take you to New York and Neda who's got the details on what could


move Wall Street today. The roll-out of economic data begins


on Monday with a look at how much outstanding credit Americans held


October and it is expected the reserve will report that figure


decreased to $20 billion and later on in the week investors will look


at retail sales and wholesale infantry numbers for November.


Retail sales like rose 3.3 present and wholesale 0.1%. The University


of Michigan is expected to put out consumer data showing that Americans


are feeling better about the economy. The economy. There is also


a number of earnings reports at this week, one of which is Costco, the


wholesale operator will likely disappoint investors with big


numbers for its first quarter. The company still dealing with


investigations into the spread of E. Coli from the rotisserie chicken


salad sold at warehouses. That sounds scary. Some of the issues to


keep an eye on when Wall Street starts. Nice to see James.


Joining us is James Hughes is Chief Market Analyst at GKFX.


In-lap going on, brand-new trading week and the markets are reacting


still to the end of the week in the US, those jobs figures, still not


super? Hanging over the European markets? Yes, the disappointment


from the ECB is the big one and is the overall figure of the ECB to try


to do something... This is a point, they continue to try to throw things


at this Eurozone problem and that has not worked for years. Yet again,


there is this negativity failing to hit the heights of what is expected.


Is the ECB dammed if it does and if it doesn't? Throwing money at the


problem, that is the only way to free up the system to get everyone


lending and borrowing? We're not saying that they are not doing


enough and is it the way they are doing it rather than what they are


doing? The way they are doing it and that completely the wrong times,


that is the issue. We have got to a situation where we have come right


to the end. The divergence between the US and European economies is


biggest issue, one is trying to throw any sadistic miss it can and


not necessarily doing enough and on the other hand, trying to raise


rates somewhere else and that huge divergence will cause issues within


the market and at the point, all we wanted for Mario Draghi to do was


through everything at this and get this kick-started, he is still


taking that reserved measures that we have seen before, even though he


is still living things and trying to add things to the economy. I might


be proved wrong by the fact that it might work! I am sure we will get


his comments. Mark Carney, he will be speaking later? Yes, what we


expect is not much, to be honest. You are not taking any prisoners! I


can feel your frustration with the central bank! I am frustrated with


always having to look at the central bank but the Bank of England is not


likely to raise interest rates or do anything this week and that is


exactly what they should be doing. OK, go and get a cup of tea! You


will be back later with no ranting! We speak to one of the youngest,


most powerful women in Africa. Named as one to watch


by several leading publications, Dr Amy Jadesimi is an entrepreneur


hiring young Nigerians and giving You're with Business Live from


BBC News. Now a look at some


of the stories from around Britain and UK manufacturing looks


like it's ending the year with These are figures from EEF? You will


remember the march of the maker 's phrase, that the Chancellor came up


with to encourage manufacturing and help people make stuff that never


actually happened. In fact, it went into reverse if these figures are to


be believed, they believe the manufacturing sector will shrink and


next. The reasons? The week Eurozone, slowing down in China,


questions over double trade but it could be this old friend, the world


price crash. This has put incredible pressure on North Sea oil and


extraction does not kind from manufacturing to people in the UK


make a lot of stuff which was into the supply chain and a lot of those


orders were cancelled quickly. The oil price, which has affected so


much in world trade, is having a big impact so it will not do its bit to


help out. Manufacturing will be a burden rather than an asset to the


economy next year. Thank you very much, Simon. More detail online.


There is more detail online and the oil


price is still headed south. We had the OPEC meeting last week and the


oil cartel not as I say doing what some would like, some of the oil


producers would like to push up the oil price. The reason that


manufacturing is important, it still accounts for 10% of the UK economy,


we have all but written off manufacturing in this country


recently especially with the decline in things like car making here, but


that's staging a resurge Abs, but manufacturing still accounting more


about 10% of the overall economy. Remember, services, the powerful


service sector, making up three-quarters.


This EEF report comes at a time when there has been enormous job losses


in the UK steel sector. The steel industry in this country has had a


terrible year, hasn't it? In terms of contraction and job losses and


restructuring. There is an issue there in terms of export, what are


we making in the UK that's sold elsewhere? Clearly the slowdown in


Europe is having an effect on the eurozone, of course, the biggest


trading partner for the UK. All that weighing on the manufacturing


figures. You're watching Business Live.


Our top story: As climate change talks enter their


second week in Paris, global leaders are looking at radical new ways to


cut emissions and save the planet. Nigeria is a country that is rich


in natural resources but its business environment still


has a poor reputation Many Nigerians claim they've not


benefited But today's guest aims to train


and employ thousands Dr Amy Jadesimi is managing


director of the Lagos Deep Offshore Logistics Base, a high-tech


industrial village, servicing But it's a world away


from her roots. Dr Jadesimi graduated as a medical


doctor from Oxford University. After a spell as an investment


banker at Goldman Sachs, she honed her entrepreneurial skills at


Stanford Business School in the US. It has paid off, last year she


featured on Forbes Magazine's 20 A world away from medicine


and banking, she returned home to Nigeria to work in her family


business before setting up She describes herself


as a "grafter" and says she's never thought of herself as being


a smart person, "just happy to kind That sounds like a nice work ethos.


She joins us now. It is nice to see you. Welcome to the programme. Good


morning. Let's start with that ethic. All the reading that I have


done about you today is talking about hard work. You don't get


anything without working hard and even if you don't achieve the things


that you set out to do, you will have learned a lot along the way and


that's always been your ethos in business? It is necessary for


success and if you look at the elements for success from the


Beatles to Microsoft, hard work is 90% of it, smart ideas get you 10%


of the way and then you have got to draft away to succeed. For anyone


thinking there is a quick way, there isn't one? We have been going since


2001 and a lot of people look at our success now. We have got $500


million industrial freeze and people think we did it overnight, but it


has been 15 years. Let's just explain how that industrial Free


Zone works. It is outside Lagos, isn't it? Yes. Explain how it w and


the concept of the whole thing. It is in the centre of Lagos harbour.


It is next to the shipping lane. It is an ecosystem we built to


accommodate industrial projects. Right now, we are in the midst of


building a FPSO for Total? What is that? It is a $4 billion vessel used


in deep off-shore. It is like a portable oil rig? It is a portable


oil rig. Exactly. They are expensive and that is what characterises the


projects. These are projects that is so expensive they require knowledge,


infrastructure and people who were not previously available in West


Africa and we provide all that in our Free Zone. Forgive me, it sounds


simple, what you're doing... Thank you. I'm sure the reality is


different, training people and giving people these skills, why has


it not been done? I tell people we are not rocket scientists, we are


doing what has been done in Norway and what has been done in America


for decades. It wasn't available because the missing element was the


private, indigenous sector being able to fund the projects. So all of


the money that's gone into it is private and we are unique is being


the only 100% Nigerian 100% Nigerian private Free Zone in Nigeria and


that what that tells you is the missing element is a private sector


that's able to fund the projects and a Government that creates an


enabling environment for us to do so. Let's talk about the combination


because what's clear about Nigeria is the the private sector is


happening. It is exciting. It is growing. It's innovative. We have


met other CEOs on this programme and on BBC World News and our programmes


look at that part and for a long time it has been held back by the


politics, by the Government, by the so-called corruption. There has been


a recent change in Government. He has only just appointed his Cabinet


after a long period, how is that working with you now? Are you


optimistic given the change in Government? It has been a tough


year, but we are ot mystic. The private sector is still very small.


This is the only facility of its kind. We need 100 of these


facilities to get the country to where it needs to be creating 200


jobs minimum. The president is a strong regulatory environment for


long-term infrastructure investors, the regulatory environment is key to


give us security for our investment. There are already strong laws on the


books. Are you going to get it though? We have got it. We have seen


what happened to MTN, whether you agree or disagree, you had one of


the most powerful companies in guy gearia being fined for violating


regulation. He demonstrated it doesn't matter who you are or how


powerful you are, you have got to stick to the rules. All right, Dr


Amy Jadesimi, thank you. It has been great to have you on the programme.


It is exciting to hear what you're up to.


Last week Monarch Airlines became the latest UK carrier to extend


the cancellation of all flights to and from the Egyptian resort of


This in response to advice from the UK Government.


The company says it now expects pre-tax profits for


Earlier, I spoke to the boss of the airline about the impact


on his business of security concerns like those in Egypt.


The aviation business has grown accustomed unfortunately to deal


with security issues after 9/11, the London bombings etcetera. We have


shown that we can make flying safe. That we can adapt and I think that


people will, you know, rally together through the whole airline


industry, airports, security, Government, but we, you know, we had


10% our traffic to Egypt. Clearly it is an impact that's negative. I


think what we are seeing with consumers they are resilient. They


tend to book later at time like this, thet don't book far in


advance, but they are booking. The British Government are vigilant


about airport security around the world. They are involved with the


Egyptian Interior Ministry. And they are going to get to a point where


they are satisfied that it is safe and then it will re-open. People can


take confidence in that. So, you know, European governments working


closely with in this case Egypt, but it is the same in other airports


around the world and you know, we know how to do this. We do know how


to do it. If it is done well, people can have confidence in it.


That was the Chief Executive of Monarch.


James is back and he has calmed down, but it might not be for long,


he is going to talk about the oil price now. The Wall Street Journal


says nobody is blinking. OPEC on Friday was the key point. Oil


continues to fall and continues to now drop below $40 a barrel. It is


worrying and what's interesting within the articles is that is the


fact that and it is widely thought that the shale industry was the big


thing that was going to cause a problem. I think the thoughts of a


lot of OPEC members and the world really was that the lower the oil


price got, the more shale producers would be priced out of the market


and move away, but that's not happening and their output is not


being cut either. The shale producers are cutting it slightly,


but nowhere near by enough and of course, saying there has to be


give-and-take from both sides and it is not happening. Nobody is blinking


as the article says and the issue will rumble on until somebody does.


Saudi Arabia keeps saying the market will come back itself, but they said


that ten months ago and it isn't doing it. You say it is worrying.


Worrying for who? We thought the shale businesses would be put out of


businesses, but they are pumping more and more? It is worrying for


global inflation, the eurozone is worrying about it. It is the problem


we have with the ECB is the fact we still have the ultra low inflation.


It is not causing as many problems in the US and that's an important


point, but still, it's important. Here you go James, this is one to


fire the words, X marks the spot that makes online ad sos maddening?


Online advertising, of course, is key. Pop-up screens. The pop-up


adverts are the one that is we are talking about. And you cannot get


rid of them. You cannot get rid of them. They appear on Business Live


all the time. All over the BBC website. No, they don't. You have to


watch a video, an advert before another video comes. Maddening,


maddening, way the world is moving. Thank you very much James for coming


in. We will see you soon. Hello. Thank you for joining me.


Thankfully we are moving into a somewhat quieter spell of weather


across the British Isles. What cloud you see is producing some rain in


some areas, but nowhere near the intensity that we have seen in some


areas over


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